POL I CY The Israeli Insurance, Pension & Finance Newspaper 39 Special edition 2022 that the hikes are coming in slow growth environment. The upshot is that the risk of mid-term stagflation and recession outcomes has risen significantly. Given the scars left by COVID-19 and fallout from the war in Ukraine, we expect longer-term growth will likely be lower than before the pandemic. Keep the structural outlook in mind: the three “Ds” To transition to a sustainable world for future generations and help make it more resilient to shocks like pandemics and war, policymakers must advance three key structural remedies: reducing divergence, accelerating digitalisation and decarbonisation. The ultimate aim is a green, more inclusive and digital economy. Insurers have a key role to play in each. With respect todivergence, insurance can reduce income inequalities by reducing inequality of outcomes after shock events. One outcome of the pandemic has been heightened awareness of the value of riskprotection solutions, a development that will have lasting resonance as driver of insurance demand. How will this help? Insurance provides financial relief when catastrophes occur, softening the blow for those in harm’s way. For instance, re/ insurers including Swiss Re have covered billions in claims from tragic COVID-19 mortality, helping families when they needed it most. With affordable solutions, insurance can benefit all segments of society and strengthen economic resilience. The pandemic has also accelerated the digital transformation of society. COVID-19 lockdowns drove consumers online for their everyday needs, including insurance. Consumers are now more comfortable with online transaction platforms, which bodes well in terms of increasing insurance sector reach going forward. Furthermore, beyond improving productivity and sustainable growth, digital technology is integral to insurance product design. For example, in response to supply chain disruptions during the pandemic, insurers are increasing their digital technology and data analytics capabilities to better understand supply chain risks and to design associated covers, including contingent business interruption and nonphysical damage covers. In this way, innovative insurance solutions can become a foundation of greater resilience. Finally, the insurance industry plays a crucial role in supporting global decarbonization. Mankind faces an existential threat from climate change. With a warmer climate expected to lead to more frequent and intense severe weather events, the industry offers solutions to manage the financial fallout from natural catastrophes – and help speed recovery. As a source of longterm capital, the industry can also help support investment in green infrastructure for a sustainable future. The enduring shock of the COVID-19 pandemic left the global economy more vulnerable, as the war in Ukraine has tragically demonstrated. These twin calamities have heightened the urgency to tackle necessary structural reforms, so society is more resilient for when the next crisis hits. The long road to recovery and resilience Continued from page 10 Jonathan Marcus Translations Hebrew-English-Hebrew translation of Insurance and financial documents Insurance policies▪Appraisals and loss adjusters reports Proposalss▪Financial statements 25 years of professional experience in the insurance sector Phone: 972-54-4757622 ▪ Fax: 972-2-5616099 ▪ E-mail: jmtargum@gmail.com
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